The Asian 'miracle': the rise of Japan and the 'tigers', presentation papers - Essay Example

October26, 2008 The Asian miracle: the rise of Japan and The tigers, Presentation papers The major Asian tiger economies are Malasia, South Korea, Hongkong, Singapore and Taiwan. Maintaining high growth rates (high GDP per capita and high HDI, Trade surplus with rich industrialized nations, Sustained rate of double-digit growth for decades) and very rapid industrialization made them prominent economies and earned them the name “Asian Tigers”. The period of emergence of these economies was in between early 1960’s and 1990’s.1. The Role of the State: Politically speaking, many of the Asian tiger economies have a recent history of military rule but most of them got liberalized and democratized recently.

What ever may be the form of governance, the role played by the State in encouraging the growth of these economies was very vital. The welfare capitalism practiced by the State helped the economic growth. The state took care of the man power requirement for these growing economies. By concentrating on higher education, the state assured qualified and expert man power for the growth of these economies. Malaysia is a typical example. The recent Malaysian development plan addresses the demand for educated and skilled workforce.

The plan statement asserts that only well educated skilled workforce can help rapid .industrialization of the economy. So the State’s intervention, in making available educated and skilled workforce is a major factor in the growth of these economies. In all “Tiger Economies”, the State spends much money on improving the college and university system of education. During the early period of this economic growth, that’s during 1960’sthese countries were relatively poor. This provided cheap labor during the early years of the growth of these economies.2. Exports and these economies: After the two world wars, the model of development advocated in and for the developing world, was abandoning of import substitution.

Thus the tiger economies followed an export driven strategy of development. They concentrated on exports to highly industrialized nations. For increasing exports, they discouraged domestic consumption. This was done again by State intervention with policies of higher tariffs. The export oriented economy had its own problems too. All global economic crises will directly reflect upon these economies. The Asian financial crisis of 1997 is an example often quoted in this context.3. Japan as a model: Yes, I think it was Japan and its successful economy, rebuilt after the world war that posed as a model for the development of the so called “Tiger Economies”.

“Economic success in Japan, followed by the Four Asian Tigers, is due to the existence of harmonious labor –Management relations” says W.Dean Kinzley in his work “Industrial Harmony in Modern Japan, the Invention of tradition”. It was the semi bureaucratic organization called “ Kyochokai”, a sort of Co-operation and Harmony Society that took care of the needs of emerging industrial society in Japan.”. “kyochokai” was established in early 1990’s.These were times of industrial troubles in Europe.

This invented tradition of unique culture of harmony helped not only Japan, but helped the Asian Tigers by posing itself as a role model. Through this unique experiment, Japan created its own kind of modernity, which very contrastingly differed from the western models. They re affirmed the Confucian values; encouraged the reemergence of their tradition of harmony and self sacrifice. It was all these values together that made this Japanese model of industrial development possible and which the Asian Tigers could easily copy.4. China and US: It was United States that had the greatest, influence on the Asian Tiger economies.

But the emergence of China as a major industrial power had developed a compitition for dominance in East Asia. Some people even predict deterioration in the relationship, between U S and China, because of this competition. But most experts ignore such warning signals. The development of China as a major industrial nation and the focus of its role in Asian Tiger economies will force U S to reorient its foreign policy accordingly. With the U S presidential election round the corner, heated discussions are on, regarding how to reorient the policies, among the U S Foreign policy experts.

More over there is a clear shift in global power from west to the east. As Mao tse-tung predicted “ the east wind is prevailing over the west”5. China: yes china is liberalizing. But it is controlled liberalization. In liberalization of economy, China has its own model as Japan has its own model for industrial development. Buddhist cultural influence is common for both these countries.Sources Used:===========1. Kinnzley .W .Dean, “Industrial Harmony in Modern Japan. The Invention of a tradition”, Routledge, London and New York, 1991.2. Mao tse-tung-- Speech at the Moscow Meeting of Communist and Workers Parties (November 18, 1957), quoted in "Statement by the Spokesman of the Chinese Government" (September 1, 1963).

* See Selected works of Mao tse-tung.